Acute myeloid leukemia (AML) is a heterogeneous condition characterized by clonal proliferation of myeloid precursors and accumulation of leukemic blasts in the bone marrow (BM), ultimately resulting in failure of the BM. It accounts for approximately 80% of cases of acute leukemia in adults. AML has several life-threatening complications. After establishing the diagnosis of AML, classifying the disease into the appropriate subtype, stratifying the risk group and determining fitness of the patient for chemotherapy, induction treatment is usually commenced. For elderly individuals and those unfit for chemotherapy, several alternative therapeutic options are available. After achieving complete remission of the disease, the patient will either receive consolidation therapy or will be subjected to hematopoietic stem cell transplantation (HSCT). Autologous and allogeneic forms of HSCT have their own indications, inclusion as well as exclusion criteria. The recent advancements in the diagnostics and therapeutics have facilitated the introduction of personalized therapy in patients with AML. There are several targeted therapies for AML and their clinical use is increasing with time. Evaluation of minimal residual disease and determination of drug resistance are vital tools to improve the outcome of AML therapy.